Friday, June 15, 2007

Leipold activates 'cure' clause

The Nashville Predators today delivered written notice to the Sports Authority of Metropolitan Government (as required by Section 2.3 (b) of its license agreement) that the club reserves the right to cancel the license agreement at the end of its 2007-08 NHL hockey season if the average number of tickets sold to home games played at the Sommet Center (excluding exhibition and preseason games) during the 'cure season' does not equal or exceed 14,000 per game.
This was speculated earlier to be part of Leipold's agreement with Balsillie, so it doesn't come as a surprise. Tuesday would have been the final deadline to invoke this clause, but by doing it late on a Friday, the move draws as little media attention as possible.

The city government, meanwhile, has a different interpretation of when this 'cure' clause can be used, and the disagreement looks as though it could be turned into a legal battle.

How much messier can it get?

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At 12:41 a.m., June 16, 2007, Blogger Paul Nicholson said...

Not only is the city playing weird counting games with the years, but we also just found out that apparently the team (whoever owns it) can buy its way out of the lease for $27mil. Even if the fans buy the 14,000 tickets per game that the "cure" clause requires.

What will be interesting is if Bettman and the BoG consider that "breaking the lease" and "not something the NHL is in the habit of doing" or if they would consider it a "buyout" and allow it, as i'm sure Balsillie would want to do.

Maybe this is what he's known all along with better paid lawyers than anyone else has.

The rest of my thoughts (and links to the news articles about the buyout clause) are here.

At 8:55 a.m., June 18, 2007, Blogger FAUXRUMORS 2 said...

1) OK, if I'm a fan of the team, and they've just been sold to someone who wants to move them(is already selling tix) why would I go to any games next season?
2) It will be a self fufilling prophesy! Piss off the fans, and they won't go, then blame the city for not supporting the team. Brilliant!


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